The South African Reserve Bank (SARB) has hiked the repo rate by 25 basis points, which property experts say will put further pressure on households already strained.<\/p>\n\n\n\n
Following the latest Monetary Policy Committee meeting, the repo rate increased to 7.00%, while the prime lending rate climbed to 10.50%. <\/p>\n\n\n\n
Four members of the committee voted in favour of the hike, while two voted to keep rates unchanged.<\/p>\n\n\n\n
The decision comes as inflationary pressures remain elevated. Headline consumer inflation rose to 4.0% in April, driven largely by an 11% jump in fuel prices.<\/p>\n\n\n\n
The central bank now expects headline inflation to average 4.4% in 2026 and 3.7% in 2027 before eventually returning to the 3% target.<\/p>\n\n\n\n
However, it warned that risks remain, particularly due to higher oil prices and the knock-on effects on food, transport, and fertiliser costs.<\/p>\n\n\n\n
Property industry leaders said the latest increase could undermine already fragile consumer confidence and further weaken the housing market.<\/p>\n\n\n\n
Samuel Seeff, chairman of the Seeff Property Group, described the move as premature and a blow to the economy and property market.<\/p>\n\n\n\n
He added that South Africans were already struggling with the combined burden of high interest rates, fuel price increases, and rising living costs, leaving households with less disposable income.<\/p>\n\n\n\n
According to Seeff, the property market has already started losing momentum after expectations of a January rate hike failed to materialise earlier this year.<\/p>\n\n\n\n
Andrew Golding, chief executive of the Pam Golding Property Group, said banks were still showing strong support for the residential market despite the challenging environment.<\/p>\n\n\n\n
\u201cBanks are working hard to offset deteriorating affordability by offering more zero-deposit home loans and cost-inclusive bonds,\u201d said Golding.<\/p>\n\n\n\n
He noted that the real concern would arise only if banks began tightening credit due to fears of unsustainable household debt levels, for which there is currently little evidence.<\/p>\n\n\n\n
Golding warned that higher interest rates would place added pressure on lower- and middle-income households, making affordability increasingly important for prospective buyers.<\/p>\n\n\n\n
BetterBond\u2019s national head of sales, Bradd Bendall, struck a more optimistic tone, saying the housing market remained resilient despite the rate increase.<\/p>\n\n\n\n
\u201cThis interest rate hike may not be ideal, but the property market is in a strong enough position to absorb the impact,\u201d said Bendall.<\/p>\n\n\n\n
While affordability pressures remain, particularly for first-time buyers, Bendall said demand in sought-after areas continues to hold firm.<\/p>\n\n\n\n
\u201cThe fundamentals of South Africa\u2019s housing market remain solid, and buyers who plan carefully can still afford an opportunity in the current market,\u201d he said.<\/p>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/04\/property-house.jpg\")
<\/a><\/figure>\n\n\n\n